Transformation Mechanisms in the Business Model/Business Process Interface

Abstract

Many scholars view the emerging business model concept as the missing link between a company's strategy and its operational implementation into business processes. They remain vague, however, in answering the question as to how strategy-induced changes to the business model can be transformed into business process adjustments. The other way round—a feedback mechanism that triggers business model adjustments in case of issues at the business process level—is not conceptualized either. The study hence is twofold. The authors explore both the top-down (business model to business process) and the bottom-up (business process to business model) perspective of this interface. The top-down part considers business model changes, such as induced by adopting a Software-as-a-Service strategy, which require an effective implementation in a firm's organization. The explorative findings cover a detailed description of the transformation framework as well as an exemplary expert survey that can serve as a reference for software firm decision makers. The bottom-up part clarifies the influence of business processes on the business model based on a literature review, expert interviews, and inductive reasoning. The authors derive a classification framework that provides new insights into the maturity of current KPI-systems and their strategic importance with regards to business model changes.